Straight Talk from Al Jacobs

RESOLVING THE HOMELESS PROBLEM

According to a recent report, the prestigious beach city of Malibu, northwest of Los Angeles, faces a crisis. For nearly two decades the Malibu United Methodist Church and allied volunteer groups provided food, shelter and other services to the area’s homeless. It appears things are now out of control as these acts of generosity proved to be an attractive draw for displaced persons from more distant locations. And as they increased in number, their conflict with the residents of the community intensified, with a surge in homeless nuisance calls and increasing reports of scattered crimes by transients. City officials are now uncertain what to do as they grapple with the problem.

Perhaps Malibu might profit from an identical situation which faced the Orange County community of Laguna Beach several decades ago. The inducement for an invasion of drifters was the Episcopal Church’s provision of sleeping quarters on their grounds together with the operation of a soup kitchen. It wasn’t long before the city found itself overrun with derelicts. I specifically recall having to step over three idlers as I tried to enter the front door of an art gallery on the Pacific Coast Highway.

As in Malibu, city authorities somewhat tolerated the situation for awhile. What triggered a change was the planting of an explosive device outside the wall of the police chief’s office. Fortunately he wasn’t there when it blew the wall in, but it galvanized the sentiment required to resolve the problem. Within 48 hours the church terminated all eating and sleeping arrangements. In addition, I’m told the police became far less friendly to interlopers. I recall, within a week, a comment attributed to a city councilman, to the effect “… we wish to encourage them to seek more suitable shelter elsewhere.” It was clear the euphemism could be translated to “… we intend to run them out of town.” Apparently the city leaders accomplished what they intended, for within a month there were few, if any, homeless to be seen anywhere.

A final thought: Malibu is free to resolve its problem as it wishes. However, if it chooses to emulate the method used by Laguna Beach, it will most likely succeed. Whether or not this can be said to constitute enlightened public service is irrelevant; it will most likely rid the city of the homeless and satisfy the local residents. Not only are there far worse ways for a municipality to exert its authority, but there’s certainly something to be said in favor of pragmatism.

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Al Jacobs, a professional investor for nearly a half-

century, issues a monthly newsletter in which he

shares his financial knowledge and experience.

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